CPP for 2024/2025 Exam
Administrative EE's primary duties? An administrative exempt employee's primary duties consist of performing
nonmanual or office work directly related to the management of
business operations of the employer or customers.
Nondiscretionary bonus Nondiscretionary bonus -Nondiscretionary bonus is a contractual or agreed-upon
bonus or incentive. Nondiscretionary bonuses paid to nonexempt EE's ARE
included in the regular rate of pay in the week earned
Workweek Any fixed, recurring period of 168 consecutive hours (7 days times 24 hours = 168
hours).
What is an IRS lock in letter? IRS lock in letterIRS letter tells an ER how to with hold FIT form an EE no mater
what was submitted on W-4 Form
When must IRS lock in letter be put in? IRS lock in letter time45-60 days is when it must be implemented and usually has
the IRS lock in letter time45-60 days is when it must be implemented and usually
has the date in the letter date in the letter
FLSA highly compensated employee: FLSA highly compensated employee-AN EXEMPT HIGHLY COMPENSATED
EMPLOYEE UNDER THE FLSA IS AN EMPLOYEE WHO MEETS ONE OF THE
DUTIES TESTS FOR EXECUTIVE, ADMINISTRATIVE OR PROFESSIONAL
EMPLOYEES AND HAS ANNUAL COMPENSATION OF $107,432FLSA
Four types of exempt employees: APES THE FOUR WHITE COLLAR TYPES OF EXEMPT EMPLOYEES ARE
ADMINISTRATIVE, EXECUTIVE, PROFESSIONAL, AND OUTSIDE SALES.
Professional EE's primary duties- An exempt professional employee is either a learned or creative professional.
Learned professionals work requires advanced knowledge. Creative professionals
work involves invention or talent.
, What amount can tipped ee's be paid? Tipped EE's may be paid NO LESS than $2.13 per hour.
When must a W4 be completed? New hires or FIT will be single and no other adjustments. Others when their
tax liabilities increase.
Executive EE's primary duties? The management of the business, direction 2 or more full-time ee's, the authority
to recommend hiring and firing.
What is the W4-S form? Its for Sick pay FIT with holding, allows EE's the ability to request income tax
with holding from third-party sick pay.
If no W4-S form is received, how is FIT handled? No federal income tax with be withheld.
What is the W4-P? Withholding for Pension or annuity payments. If not received then with hold
as single no other adjustments.
When is an amended W4 Implemented? When EE submits an amended W4 - must be implemented with the first payroll no
later than 30 days after form is submitted.
How can W4 be made invalid? When there are any alterations, additions or deletions to the form. Claiming a
flat dollar or percentage. Verbally
What does exempt W4 form mean? EE submits an exempt W4, the EE will have no FIT with held for remainder of year.
The form expires on 2/15 of the year after it was submitted.
What is a W4? Employees withholding certificate for federal income tax.
What is the minimum weekly salary Exempt Employees? FLSA - White Collar Exemptions rules, must be paid a minimum salary of $684 per
week. Teachers, lawyers and attorneys are not required to be paid a salary.
What is the reasonable basis test? Reasonable basis test allows a worker classified as an employee under
the common law test to be treated as an independent contractor.
When are meal periods time worked? A meal period that is not at least 30 minutes of uninterrupted time is time
worked under the FLSA.
Engaged to be waiting Time worked because the employer requires the employee to wait to begin work
IRS misclassification penalties: #2 THE EMPLOYER IS LIABLE FOR 100% OF FIT AND 100% OF SOCIAL SECURITY
AND MEDICARE (BOTH EMPLOYEE AND EMPLOYER SHARE) WHEN A
WORKER IS INTENTIONALLY MISCLASSIFIED AS AN INDEPENDENT
CONTRACTOR.
Federal minimum wage $7.25
Who uses economic realities factors? THE DOL USES THE ECONOMIC REALITIES FACTORS TO DETERMINE IF A
WORKER IS AN EMPLOYEE OR AN INDEPENDENT CONTRACTOR UNDER THE
"TO SUFFER OR PERMIT TO WORK" CONCEPT.
Administrative EE's primary duties? An administrative exempt employee's primary duties consist of performing
nonmanual or office work directly related to the management of
business operations of the employer or customers.
Nondiscretionary bonus Nondiscretionary bonus -Nondiscretionary bonus is a contractual or agreed-upon
bonus or incentive. Nondiscretionary bonuses paid to nonexempt EE's ARE
included in the regular rate of pay in the week earned
Workweek Any fixed, recurring period of 168 consecutive hours (7 days times 24 hours = 168
hours).
What is an IRS lock in letter? IRS lock in letterIRS letter tells an ER how to with hold FIT form an EE no mater
what was submitted on W-4 Form
When must IRS lock in letter be put in? IRS lock in letter time45-60 days is when it must be implemented and usually has
the IRS lock in letter time45-60 days is when it must be implemented and usually
has the date in the letter date in the letter
FLSA highly compensated employee: FLSA highly compensated employee-AN EXEMPT HIGHLY COMPENSATED
EMPLOYEE UNDER THE FLSA IS AN EMPLOYEE WHO MEETS ONE OF THE
DUTIES TESTS FOR EXECUTIVE, ADMINISTRATIVE OR PROFESSIONAL
EMPLOYEES AND HAS ANNUAL COMPENSATION OF $107,432FLSA
Four types of exempt employees: APES THE FOUR WHITE COLLAR TYPES OF EXEMPT EMPLOYEES ARE
ADMINISTRATIVE, EXECUTIVE, PROFESSIONAL, AND OUTSIDE SALES.
Professional EE's primary duties- An exempt professional employee is either a learned or creative professional.
Learned professionals work requires advanced knowledge. Creative professionals
work involves invention or talent.
, What amount can tipped ee's be paid? Tipped EE's may be paid NO LESS than $2.13 per hour.
When must a W4 be completed? New hires or FIT will be single and no other adjustments. Others when their
tax liabilities increase.
Executive EE's primary duties? The management of the business, direction 2 or more full-time ee's, the authority
to recommend hiring and firing.
What is the W4-S form? Its for Sick pay FIT with holding, allows EE's the ability to request income tax
with holding from third-party sick pay.
If no W4-S form is received, how is FIT handled? No federal income tax with be withheld.
What is the W4-P? Withholding for Pension or annuity payments. If not received then with hold
as single no other adjustments.
When is an amended W4 Implemented? When EE submits an amended W4 - must be implemented with the first payroll no
later than 30 days after form is submitted.
How can W4 be made invalid? When there are any alterations, additions or deletions to the form. Claiming a
flat dollar or percentage. Verbally
What does exempt W4 form mean? EE submits an exempt W4, the EE will have no FIT with held for remainder of year.
The form expires on 2/15 of the year after it was submitted.
What is a W4? Employees withholding certificate for federal income tax.
What is the minimum weekly salary Exempt Employees? FLSA - White Collar Exemptions rules, must be paid a minimum salary of $684 per
week. Teachers, lawyers and attorneys are not required to be paid a salary.
What is the reasonable basis test? Reasonable basis test allows a worker classified as an employee under
the common law test to be treated as an independent contractor.
When are meal periods time worked? A meal period that is not at least 30 minutes of uninterrupted time is time
worked under the FLSA.
Engaged to be waiting Time worked because the employer requires the employee to wait to begin work
IRS misclassification penalties: #2 THE EMPLOYER IS LIABLE FOR 100% OF FIT AND 100% OF SOCIAL SECURITY
AND MEDICARE (BOTH EMPLOYEE AND EMPLOYER SHARE) WHEN A
WORKER IS INTENTIONALLY MISCLASSIFIED AS AN INDEPENDENT
CONTRACTOR.
Federal minimum wage $7.25
Who uses economic realities factors? THE DOL USES THE ECONOMIC REALITIES FACTORS TO DETERMINE IF A
WORKER IS AN EMPLOYEE OR AN INDEPENDENT CONTRACTOR UNDER THE
"TO SUFFER OR PERMIT TO WORK" CONCEPT.
